Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Prices Test New Lows As Traders Wait For Trump’s Decision On Iran

Natural Gas Moves Higher As Traders Bet On Rising Demand

Natural gas tested new highs as traders focused on the recent EIA report and reacted to bullish weather forecasts. Traders expect that higher temperatures will boost cooling demand, which will be bullish for natural gas prices.

Natural gas settled above the previous resistance at $3.20 – $3.25 and made an attempt to settle above $3.35. A move above $3.35 will push natural gas towards the next resistance, which is located in the $3.50 – $3.55 range.

On the support side, a successful test of the support at $3.20 – $3.25 will open the way to the test of the next support level at $3.00 – $3.05.

WTI Oil Remains Under Pressure As Traders Prepare For Iran Deal

WTI oil tested new lows as President Trump indicated that he could make a decision on the potential deal with Iran soon.

In his post, Trump said that he would be meeting in the Situation Room to make a final determination. Several hours have passed since Trump published the post, and there were no official announcements.

As usual, Iranian media denied Trump’s words, reporting that the sides did not discuss the fate of Iran’s nuclear program and focused on other issues. The reports from the U.S. and Iran usually contradict each other, so traders will have to wait for the official deal announcement to learn the details. In such situations, the ultimate deal usually consists of a mix of points that have been previously presented by the sides of negotiations.

Overall, traders are optimistic that the deal would be reached. Iran has suffered serious damage, while the U.S. naval blockade puts significant pressure on the country’s weak economy. Meanwhile, high oil prices have hurt consumer sentiment in the U.S. and are starting to deal damage to global economy, so the U.S. also wants to get a deal. The key question is whether U.S. and Iran are ready to compromise to make negotiations work.

From the technical point of view, WTI oil settled below the $90.00 level and is trying to settle below $87.00. In case this attempt is successful, WTI oil will head towards the nearest support level, which is located in the $84.00 – $84.50 range.

Brent Oil Tests Support At $91.00 – $91.50

Brent oil remains under pressure as traders prepare for the potential deal between U.S. and Iran.

It should be noted that U.S. has issued a warning that it would target mine-laying vessels in the Strait of Hormuz. The future operating regime of the Strait of Hormuz is among the key questions in negotiations, and the U.S. wants it to be open for all.

Currently, Brent oil is trying to settle below the support at $91.00 – $91.50. In case Brent oil manages to settle below the $91.00 level, it will move towards the next support, which is located in the $86.00 – $86.50 range. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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